Indian Railway Finance Corporation (IRFC) has signed a loan agreement with the consortium of State Bank of India, HDFC Bank Ltd, Sumitomo Mitsui Banking Corporation, GIFT City Branch and DBS Bank in New Delhi for raising External Commercial Borrowing (ECB) loan of Japanese Yen (JPY) equivalent $1.1 billion. This is the first ECB being raised by IRFC during this FY after it successfully raised JPY equivalent $700 million across two ECB transactions in FY 2025-26.
The ECB, being raised for JPY equivalent $1.1 billion has been tied up for a 5-year tenor and benchmarked to Overnight TONAR (Tokyo Overnight Average Rate). The proceeds from this facility shall be utilised towards financing projects having forward or backward linkage with the railway sector or any other project as may be approved by the Company in compliance with the ECB Guidelines.
Indian Railway Finance Corporation is the dedicated market borrowing arm of the Indian Railways.
